XPO targets $1.5 bn profit by 2019

XPO Logistics has set new sales and profits targets to reflect its expanded platform for global growth. It is targeting EBITDA of $1.5 billion by 2019 and revenue of some $23 billion.

The US company has been growing rapidly through acquisitions, notably Norbert Dentressangle.

For the second quarter of 2015, including 22 days of financial performance from the operations of Norbert Dentressangle, total gross revenue increased 109.3 per cent year-on-year to $1.2 billion, and net revenue increased 317.2 per cent to $508.6 million.

On a GAAP basis, the company reported a net loss of $78.8 million for the quarter, compared with a net loss of $13.8 million for the same period in 2014.

Bradley Jacobs, chairman and chief executive officer, said: “We’re continuing to grow the company at a rapid pace, well ahead of plan. In the second quarter, we more than doubled our gross revenue year-over-year, grew our net revenue four-fold, and increased adjusted EBITDA more than five-fold.

“We’re in a strong position to act on acquisition opportunities on both sides of the Atlantic, with more than $1.2 billion in cash, an untapped ABL facility, and a highly integrated global platform. Our new trajectory puts us on track to nearly triple the size of our company in four years. We’re now targeting approximately $23 billion of revenue and $1.5 billion of EBITDA in 2019.”

* XPO Logistics recently teamed with Highland Spring to provide emergency water supplies to schools, homes and businesses across North Lanarkshire after 6,000 people were told not to cook, drink or wash with mains water in the region following concerns over its taste and smell. It had to coordinate the immediate distribution of 12 fully loaded trucks of still spring water from its Mossend storage and distribution site.